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Question: Discuss about theCritical Thinking for Multilateral Trade Liberalization. Answer: Aggarwal, V., Urata, S. (Eds.). (2013). bilateral trade agreements in the Asia-Pacific: Origins, evolution, and implications. Routledge. The content of this paper looks into regional trade agreements and evaluate the impact of the trade on the prospect of a multilateral trade liberalization. According to Aggarwal Urata 2013, regional trade liberalization can be defined as a political economic policy which provides economic corporation and coordination among countries. The article by Aggarwal Urata 2013 states that regionalism is the first step towards a multilateral trade liberation thus there are clear relationships between the two international trade organization. They argue that even though, the two trade organizations have close relationship they also differ in terms of arrangement and benefits. Aggarwal Urata 2013 however states that the relationship between the two may have effects on each other but at a smaller margin. Aggarwal propounds in their article that the idea of trade liberalization has no harm on the multilateral trade while Urata suggest that trade liberalization is in fact crucial to multilateral trade. They support their school of thought justifying that regional trade agreement is not just related to multilateral trade liberalization but it forms the foundation in which multilateral trade is built. Aggarwal Urata 2013 in their school of reasoning argue that regionalism creates profits for one trading bloc benefits other trading blocs compared to multilateral trade liberalization which benefits all states involved in inter-state free trade. These writers in their thought concludes that regional trade agreements correlates to global trade liberalization and the agreements is the initial stage for global trade liberalization. Bhagwati, J. N. (2014). The world trading system at risk; Regionalism as a Stumbling Block to Multilateral Trade Liberalization Princeton University Press. Bhagwati 2014 in his work on the world trade system at risks views the close relationship between international trade agreements and multilateral trade liberalization. Bhagwati in his school of thought suggest that the theory of multilateral trade liberalization is one of the best theory compared to international trade agreement since it results into an avoidance of risks coming with trade diversions. Bhagwati 2014 however, states that regional trade agreements is also crucial and further explains that when one remove that assumption that trade environment is free and perfect then one can see that benefits of regional trade agreements. He states that we only begin the unique and interesting picture of regional trade agreements once we analyze benefits of competition and economic scale effects of regional trade agreements. Bhagwati in his school of thought further explains more benefits of regional trade agreement over a multilateral trade liberalization with regards to investments, g rowth of an economy as well as removal of trading barriers. Bhagwati 2014 in conclusion of his school of thinking concludes that new regional agreement is better that any other version of trade as its structure and factors in trade organization outweighs multilateral trade liberation benefits. Cooper, W. H. (2014). Free trade agreements: Impact on US trade and implications for US trade policy. Current Politics and Economics of the United States, Canada and Mexico, 16(3), 425. Over a period of the last fifteen years according to Cooper, 2014, regional trade agreement has approved to be having benefits as well as defining features of modern economy and has a very powerful force for globalization compered to multilateral trade liberalization. He further states in his work citing example of European Union that trade agreement results to better economic trade and peaceful political arrangements. Cooper, in his example of the European Union trade union states that, regional trade not only results into a perfect economic growth among the member states but create peaceful relation. On the other just as other economists, he states that poor organization of RTAs can results into massive destruction to the member states due to heated competition and wrangles. Cooper concludes his school of thought stating that where regional trades agreement cannot work well to promote economic growth, the purpose can be achieved through a well-organized multilateral trade liberatio ns. Dr, A., Baccini, L., Elsig, M. (2014). The design of international trade agreements: Introducing a new dataset. The Review of International Organizations, 9(3), 353-375. Dr, Baccini Elsig, 2014 hold in their school of thought that multilateral trade liberalization has benefits to trading blocs compared to regional trade agreement. They support their school of reasoning stating that poorly organized regional trade agreements have increased the tension between countries as well as fueled risk of inter-country conflicts. They further argue that there is high cost in term of economic adjustments involved in the pursuit of regional trade agreements compared to the pursuit of multilateral trade liberalization integrations. According to Dr, Baccini Elsig 2014, involvement of such great economic adjustments in order to integrate regional trading agreement have resulted into local livelihoods being undermined at the expense of created winners and losers as well as spurring competition between groups. They then concluded that multilateral trade liberalization is the best way the modern economy can be driven compared to regional trade agreements. Gray, J. (2014). Domestic capacity and the implementation gap in regional trade agreements. Comparative Political Studies, 47(1), 55-84. In the article by Gray, 2014, the benefits of trade liberalization are only great where the trade liberalization is organized multilaterally. On the other hand Gray, 2014 states that over the current years various rounds of multilateral trade negotiations have proven to be elusive and majority of the countries have sought a more quickly realizable outcomes through regional free trades agreements. On the other side free trade agreements have been sorted by most of the nations as it is seen as a trade organization which promotes broader economic integration as well as serving international policies and foreign strategic interests. Mansfield, E. D. (2015). The proliferation of preferential trading arrangements. In THE POLITICAL ECONOMY OF INTERNATIONAL TRADE (pp. 205-225). Over the recent years various approaches to trade liberalization have been formulated and more trends are still emerging on the same as discussed by Mansfield, (2015). Various debates based on this have attracted a debate in relation to these trends and implication. Mansfield, 2015 in his works looks into the welfare implications of the regional trade agreements in comparison to liberalization and their impact on global economy. Mansfield on his school of thought concluded that trade liberalization is crucial to economic development compared to a free trade. He further states that liberalization is beneficial to developing countries as they are able to create deep links with other nations. Moser, C., Rose, A. K. (2014). Who benefits from regional trade agreements? The view from the stock market. European Economic Review, 68, 31-47. Multilateral trade liberation is an important international trade theory according to Moser Rose, 2014 school of thought. According to the two economists, regional trade agreement and multilateral liberation correlates and works together. Moreover, regional trade agreements is important for multilateral liberalization and it forms the foundation of which multilateral trade liberation is founded. Moser Rose conclude their school of thought by stating that multilateral liberalization is better international trade theory compared to regional trade agreements. Rutherford, T. F., Rutstrom, E. E., Tarr, D. (2014). Morocco's free trade agreement with the EU: A quantitative assessment. In APPLIED TRADE POLICY MODELING IN 16 COUNTRIES: Insights and Impacts from World Bank CGE Based Projects (pp. 405-437). Rutherford, Rutstrom Tarr, 2014 in their study investigates two forms of regional trade agreement and multilateral liberation. According to their investigation, Rutherford, Rutstrom Tarr came to support regional trade agreement as a perfect theory for international trade development. They state in their work that regional trade agreement is the basis where nations start before moving to multilateral trade liberation. However, they stated that regional trade agreement is crucial for trade development but the theory is weak when trade diversities are created by other trading blocs. Based on this they support multilateral trade liberation as RTAs can be influenced by trade diverse. Summary and contrast on main arguments on both sides of the issues Both regional trade agreements as well as multilateral trade liberalization have their unique characteristics which make each international trade theory beneficial to each regional blocs. According to the above articles and writers schools of thoughts, regional trade agreements correlates to global trade liberalization, RTAs is the initial stage for global trade liberalization it forms the basic foundation of liberalization done multilaterally. On other side, regional agreement is better that any other version of trade as its structure and factors in trade organization outweighs multilateral trade liberation benefits, however, regional trade agreements always suffer from trade diversities created by other countries. Regional trade agreement over a multilateral trade liberalization with regards to investments, growth of an economy as well as removal of trading barriers Trade liberalization is crucial to economic development compared to a free trade. Moreover, multilateral liberalization is beneficial to developing countries as they are able to create deep links with other nations. Trading activities organized with liberations results into creation of deeper linking among nations. In comparison to multilateral liberalization, regional trade agreement only provide links to countries operating within the trading bloc. Free trade agreements are however, been sorted by most of countries and many countries see RTAs trade as a form of organization which promotes broader economic integration and serve international policies and foreign strategic interests. On other hand, multilateral trading liberalization is a more important international theory compared regional trade agreement. Multilateral trade liberalization involves low economic cost compared to the high cost in terms of economic adjustments involved in the pursuit of regional trade agreements. Multilateral trading agreement in this way has little effect on the domestic livelihood compared to regional trade agreement which affects domestic livelihood as it creates losers and winners inter, of trade. Trade liberalization is crucial to economic development compared to a free trade In conclusion even though the many countries in the current world value regional trade agreements, multilateral liberations of trade in crucial for economic development of nations compared to regional trade agreement based on its benefits to parties involved. References Aggarwal, V., Urata, S. (Eds.). (2013). bilateral trade agreements in the Asia-Pacific: Origins, evolution, and implications. Routledge. Bhagwati, J. N. (2014). The world trading system at risk. Princeton University Press. Cooper, W. H. (2014). Free trade agreements: Impact on US trade and implications for US trade policy. Current Politics and Economics of the United States, Canada and Mexico, 16(3), 425. Dr, A., Baccini, L., Elsig, M. (2014). The design of international trade agreements: Introducing a new dataset. The Review of International Organizations, 9(3), 353-375. Gray, J. (2014). Domestic capacity and the implementation gap in regional trade agreements. Comparative Political Studies, 47(1), 55-84. Mansfield, E. D. (2015). The proliferation of preferential trading arrangements. In THE POLITICAL ECONOMY OF INTERNATIONAL TRADE (pp. 205-225). Moser, C., Rose, A. K. (2014). Who benefits from regional trade agreements? The view from the stock market. European Economic Review, 68, 31-47. Rutherford, T. F., Rutstrom, E. E., Tarr, D. (2014). Morocco's free trade agreement with the EU: A quantitative assessment. In APPLIED TRADE POLICY MODELING IN 16 COUNTRIES: Insights and Impacts from World Bank CGE Based Projects (pp. 405-437).